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OpenIPO Ground Rules |
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The OpenIPO auction
is based on a model developed by William Vickrey, Nobel-Prize winning economist. A similar model is used to
auction off U.S. Treasury bills, notes, and bonds.
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We are committed to
assisting the OpenIPO network enforce a number of rules to ensure the fairness of the OpenIPO auction process.
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- All bidders are on
equal footing.
- This auction represents 100%
of the IPO. No other shares are available to the public.
- Bids are considered indications
of interest. A registration statement relating to the securities being offered will have been
filed with the Securities and Exchange Commission but not yet become effective. The securities
may not be sold nor may offers to buy be accepted prior to the time that the registration
statement becomes effective. A bid involves no obligation or commitment of any kind prior to its
acceptance after the effective date.
- Bidding is private. You can't see
anyone else's bid and they can't see yours.
- Bids may be modified or withdrawn
prior to their acceptance after the close of the auction and effectiveness of the registration statement.
- A bid consists of a certain number of
shares at a certain price. At Lombard Securities, minimum share quantities vary from issue to issue. See
Current OpenIPO Offerings for more information about this. You can bid
whatever price you want based upon
what you believe the value of the company is. A price range is provided for each offering based upon an
estimate of the company's value. However, you are free to bid above or below this range.
- In order to meet our obligations to
distribute the stock to a sufficient number of public shareholders, the underwriter may need to reduce
the allocations available to bidders who submit bids for large quantities of stock. All such bids will
be reduced by the same percentage.
- On the earliest date that an OpenIPO
auction is projected to close, you must have sufficient funds in your account to meet the total of your
bid (or bids, if applicable).
- There are no penalties or restrictions
of any kind on selling shares acquired via an OpenIPO auction except restrictions that may be imposed by
law.
- If it appears that a bid is intended
to manipulate the offering or may interfere with its orderly completion, we reserve the right to reject
it.
- Lombard Securities and W.R. Hambrecht+Co.
may limit your ability to participate in OpenIPO offerings on the basis of your specified investment objectives,
financial circumstances, suitability, or credit risk. To participate in the OpenIPO System, you will be
required to enter into an OpenIPO Participation Agreement. To view a sample of the Agreement, click
here.
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If you are a potential investor, click here to request an OpenIPO Package or call us at 1.800.755.2144. |
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